Automotive Collision Market size is likely to cross USD 310 billion by 2027, according to a new research report by Global Market Insights Inc.
Rising number of accidents is bolstering the collision repair industry growth. Over speeding, distracted driving, unsafe road infrastructure & vehicles are key reasons behind road accidents across the globe. Vehicle collision can result in various kinds of damages, from small scale to large scale requiring immediate need of repair. Increasing automobile sales are contributing towards traffic congestion in major cities, thereby increasing risk of minor to major accidents.
COVID-19 pandemic has caused significant decline in revenue generation of numerous verticals associated with the automotive industry. Due to strict lockdown measures and transportation restrictions, significant drops in vehicle movements were observed during the pandemic, resulting in fewer cases of collisions reported. Moreover, various automotive service & repair shops were closed during this time by lack of work and manpower. The automotive collision market is expected to gain momentum with the lifting of strict restrictions over time.
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Browse key industry insights spread across 220 pages with 166 market data tables & 11 figures & charts from the report, “Automotive Collision Repair Market Size By Product (Crash Parts, Paints & Coatings, Adhesives & Sealants, Abrasives, Finishing Compounds), By Vehicle (Passenger Cars, LCV, HCV, Two Wheelers), By Source (New OEM, Aftermarket, Recycled, Remanufactured), By Auto Body Shops (Dealer Owned Shops, Independent Repair Shops), COVID-19 Impact Analysis, Regional Outlook, Application Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Crash parts to gain significant traction in future
Crash parts to capture 35% of the automotive collision market share by 2027. Hoods, fenders and door panels are the most vulnerable components in case of minor and major accidents. These crash parts are offered through OEM and aftermarket channels.
Collision repair industry from two wheelers segment generated over USD 20 billion revenue in 2020. Two-wheelers offer a feasible mode of transportation owing to their low costs and ease of operability in high-traffic areas. Lower maintenance costs along with enhanced reliability and lower cost of acquisition are providing potential growth prospects. Rising cases of accidents impelled by rash driving and over speeding are expected to expand the market revenue.
Increasing popularity of recycled products will drive the market growth
The demand from recycled sources is anticipated to witness 2% CAGR through 2027. The growing demand to develop environment-friendly automotive products will drive the market share. Technology advancements coupled with continuous R&D efforts by automotive manufacturers will boost the penetration of recycled products.
High quality service offerings likely to trigger growth of dealer-owned shops
The increasing preference to opt for dealer-owned shops led by the high quality and superior spare parts is augmenting the automotive collision market growth. However, efficient service offerings provided by highly skilled technicians coupled with extended guarantees and warranties to further enhance the industry statistics. Features including scheduling appointments and bookings online & through mobile applications are providing a positive market outlook.